China Aged Care Industry Report,
2014-2017
May 2015
STUDY GOAL AND OBJECTIVES
METHODOLOGY
This report provides the industry executives with strategically significant
Both primary and secondary research methodologies were used
competitor information, analysis, insight and projection on the
in preparing this study. Initially, a comprehensive and exhaustive
competitive pattern and key companies in the industry, crucial to the
search of the literature on this industry was conducted. These
development and implementation of effective business, marketing and
sources included related books and journals, trade literature,
R&D programs.
marketing literature, other product/promotional literature, annual
reports, security analyst reports, and other publications.
REPORT OBJECTIVES
Subsequently, telephone interviews or email correspondence
 To establish a comprehensive, factual, annually updated and cost-
was conducted with marketing executives etc. Other sources
effective information base on market size, competition patterns,
included related magazines, academics, and consulting
market segments, goals and strategies of the leading players in the
companies.
market, reviews and forecasts.
 To assist potential market entrants in evaluating prospective
acquisition and joint venture candidates.
 To complement the organizations’ internal competitor information
INFORMATION SOURCES
The primary information sources include Company Reports,
and National Bureau of Statistics of China etc.
gathering efforts with strategic analysis, data interpretation and
insight.
 To suggest for concerned investors in line with the current
development of this industry as well as the development tendency.
 To help company to succeed in a competitive market, and
Copyright 2012 ResearchInChina
understand the size and growth rate of any opportunity.
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Abstract
According to the UN standard (the elderly people aged over 60
accounting for 10% of total population or the elderly people over age 65
occupying 7% of total population in one region), China entered the
aging society early in 1999. By the end of 2014, China’s population
aged over 60 reached 212 million, making up 15.3% of total population,
and the people aged 65 and above hit 138.1 million, or 10.1% of total
population.
To deal with rapidly aging population, the Chinese government
incorporated the issue of aging into the National 12th Five-Year Plan,
and has introduced a number of favorable policies and laws &
regulations from 2012, including the Opinion on Comprehensively
Pushing Forward the Home-based Care Services, the Opinions on
Accelerating the Development of Social Services for the Aged, the
Guidance on Land for Old-age Service Facilities, and The Executive
Opinion on Encouraging Private Capital to Participate in Old-age
Service Industry Development.
By the end of 2014, the number of urban residents participating in the
basic endowment insurance amounted to 341.15 million, a year-on-year
addition of 18.97 million; elderly service institutions totaled 38,000, with
5.514 million beds, or 26.01 beds for per thousand elderly people.
The Chinese aged care market is now worth about RMB4 trillion, and
is expected to surge to RMB13 trillion by 2030. Propelled by the huge
potential of the industry and multiple positive policies, local real estate
developers, insurance companies, and diversified companies have
expanded into endowment real estate, medical care, and pension
finance fields, especially the endowment real estate market.
Copyright 2012ResearchInChina
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Real estate developer: represented by Vanke and Poly Real Estate, which both forayed into endowment real estate early. At present, Beijing
Vanke has primarily selected 10 projects as community old-age care centers, totaling 87,030 square meters, and capable of providing nearly
3,000 beds. Poly Real Estate has planned or is building 7 old-age care real estate projects in 6 cities like Beijing, Shanghai, Guangzhou, and
Chengdu, and will set up 50 “Hexihui” old-age care brand chains within next five to ten years.
Insurance Company: represented by Union Life and Taikang Life. Union Life built China’s first old-age care community invested by an
insurer, has finished its layout in old-age care industry in Wuhan, Shenyang, Nanning, Hefei, Jinan, Beijing, and Shanghai, and plans to
develop 26 large old-age care communities nationwide within? ten years.
Taikang Life set foot in old-age care community field in 2009, and has planned and built old-age care communities in Beijing, Shanghai,
Guangzhou, Sanya, and Suzhou. The company’s first old-age care community- Taikang Community Old-Age Care Community Beijing
Flagship is scheduled to be officially put into service in 2015. In addition, the company plans to invest 100 billion to build 15-20 old-age care
communities across the country.
In addition, some foreign companies have started to enter Chinese endowment real estate industry via cooperation with local firms. For
example, in Feb 2013, British PRP architects firm signed strategic cooperation agreement with Chongqing Jinyang Real Estate Development
and Sichuan Chamber of Commerce to jointly develop old-age care industry demonstration base in Chongqing; in Dec 2014, Apple Hill
Group officially announced to enter the Sichuan old-age care market, and to create retirement real estate projects with Guisen International
Group.
Compared with developed countries, the aged care industry has just started in China, with most of endowment real estate projects having not
been completed and business model still being explored. However, within next three years, as old-age care real estate projects go into
operation, business models of the aged care industry in China will grow clear, and the market size will expand rapidly.
Copyright 2012ResearchInChina
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
China Aged Care Industry Report, 2014-2017 focuses on the following:
China’s old-age security system, including policy environment, old-age security, medical insurance, financial security;
Chinese aged care market, covering market demand & supply, development status quo of aged care industry in foreign countries;
Chinese aged care real estate market, including current development, competitive landscape, profit models and investment risks of the
industry;
17 Chinese companies that get involved in aged care industry, including operation, revenue structure, and endowment real estate business.
Copyright 2012ResearchInChina
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Table of contents
1 Overview of Aged Care Industry
1.1 Definition
1.2 Industry Chain
1.3 Models
1.3.1 Home-based Care
1.3.2 Institution-based Care
1.3.3 Community-based Care
1.4 Characteristics
1.4.1 Comprehensiveness
1.4.2 Welfare
1.4.3 Public Benefit
1.4.4 Profitability
2 China's Old-age Security System
2.1 Policies
2.1.1 Twelfth Five-Year Plan
2.1.2 Other Policies and Regulations
2.2 Old-age Security
2.2.1 Pension Insurance
2.2.2 Social Assistance
2.3 Health Care
2.3.1 Urban Basic Medical Insurance
2.3.2 New Rural Cooperative Medical
2.3.3 Elderly Health Care Services
2.4 Financial Security
2.4.1 Pension Finance
2.4.2 Commercial Pension Insurance
2.4.3 Nursing Insurance
2.4.4 Comprehensive Liability Insurance of
Aged Care Institutions
3 Chinese Aged Care Market
3.1 Demand
3.1.1 China's Population Aging Enters the
Accelerated Phase
3.1.2 Dependency Ratio of Elderly Population
Rises Year by Year
3.1.3 Proportion of Working-age Population
Declines
3.1.4 Size of Average Household Shrinks
3.2 Supply
3.2.1 Aged Care Pattern
3.2.2 Home-based Care
3.2.3 Institution-based Care
3.3 Development Status of Foreign Aged Care
Industry
3.3.1 United States
3.3.2 Great Britain
3.3.3 Japan
4 Chinese Aged Care Real Estate Market
4.1 Current Development
4.1.1 Brief Introduction
4.1.2 Foreign Experience
4.2 Competitive Landscape
4.2.1 Overview
4.2.2 Real Estate Enterprises
4.2.3 Insurance Companies
4.2.4 Diversified Enterprises
4.2.5 Foreign-funded Enterprises
4.3 Profit Models
4.3.1 Self-operation
4.3.2 Sale + Lease
4.3.3 Sale
4.4 Investment Risks
4.4.1 Sales Modes
4.4.2 Profit Models
4.4.3 Supporting Policies
4.4.4 Site Selection
4.4.5 Profitability
5 Key Enterprises in China Aged
Care Industry
5.1 Vanke
5.1.1 Profile
5.1.2 Operation
5.1.3 Revenue Structure
5.1.4 Gross Margin
5.1.5 Aged Care Real Estate
Business
5.1.6 Sale
5.1.7 Forecast and Outlook
5.2 Poly Real Estate
5.2.1 Profile
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Table of contents
5.2.2 Operation
5.2.3 Revenue Structure
5.2.4 Gross Margin
5.2.5 Investment
5.2.6 Aged Care Real Estate Business
5.2.7 Forecast and Outlook
5.3 Beijing Capital Land
5.3.1 Profile
5.3.2 Operation
5.3.3 Gross Margin
5.3.4 Investment
5.3.5 Aged Care Real Estate Business
3.5.6 Forecast and Outlook
5.4 Sino-Ocean Land
5.4.1 Profile
5.4.2 Operation
5.4.3 Revenue Structure
5.4.4 Gross Margin
5.4.5 Sale
5.4.6 Land Reserve
5.4.7 Aged Care Real Estate Business
5.4.8 Forecast and Outlook
5.5 Taikang Life
5.5.1 Profile
5.5.2 Operation
5.5.3 Revenue Structure
5.5.4 Aged Care Business
5.6 New China Life Insurance
5.6.1 Profile
5.6.2 Operation
5.6.3 Revenue Structure
5.6.4 Aged Care Business
5.6.5 Forecast and Outlook
5.7 Ping An Insurance
5.7.1 Profile
5.7.2 Operation
5.7.3 Revenue Structure
5.7.4 Aged Care Business
5.7.5 Forecast and Outlook
5.8 Union Life
5.8.1 Profile
5.8.2 Operation
5.8.3 Revenue Structure
5.8.4 Aged Care Business
5.9 Cherish Yearn
5.9.1 Profile
5.9.2 Operation
5.9.3 Aged Care Real Estate Business
5.9.4 Development Strategy
5.10 Huichen Life
5.10.1 Profile
5.10.2 Operation
5.10.3 Development Strategy
5.11 Tianjin Hetong Senior Citizens' Welfare
Association
5.11.1 Profile
5.11.2 Operation
5.11.3 Development
5.12 Sunset Glow Chain Seniors’ Apartment
5.12.1 Background
5.12.2 Operation Mode
5.12.3 Jiangyin Sunset Glow Seniors’
Recreation Center
5.13 Shanghai Henghui Medical Treatment
Technique Progress
5.13.1 Profile
5.13.2 Aged Care Business
5.14 Zhejiang Double Arrow Rubber
5.14.1 Profile
5.14.2 Aged Care Business
5.15 Hebei Sanhe Yanda Industrial Group
5.15.1 Profile
5.15.2 Aged Care Business
5.15.3 Business Model
5.16 Bright Food (Group)
5.16.1 Profile
5.16.2 Aged Care Business
5.17 China Taiping Insurance Group Ltd.
5.17.1 Profile
5.17.2 Aged Care Business
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Selected Charts
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Industry Chain of Aged Care Sector
Key Tasks of China’s Old-age Programs during “12th Five-Year Plan” Period
Major Policies on China’s Aged Care Industry, 2001-2015
Number of Urban Workers Involved in Basic Endowment Insurance in China (by Type), 2009-2013
Income and Expenses of Basic Endowment Insurance Fund in China’s Urban Areas, 2009-2014
Accumulated Balances of Basic Endowment Insurance Fund in China’s Urban Areas, 2009-2014
Number of Rural and Urban Residents Involved in Basic Endowment Insurance in China, 2010-2014
Number of People Enjoying Subsistence Allowances for the Urban and Rural Poor in China, 2009-2014
Subsistence Allowance Level of the Urban and Rural Poor in China, 2009-2014
Number of People Enjoying the Five Guarantees in the Chinese Rural Areas (by Type), 2009-2014
Expenditure for the Five Guarantees in China’s Rural Areas (by Type), 2009-2014
Average Standard for the Five Guarantees in Rural Areas of China (by Type), 2009 -2014
Population of Elderly People Who Enjoy Advanced Age Subsidies in China, 2009 -2014
Number of Urban Workers and Residents Who Enjoy Basic Medical Insurance in China (by Type), 2009-2014
Income and Expenses of China’s Urban Basic Medical Insurance Fund, 2009-2014
Accumulated Balance of China’s Urban Basic Medical Insurance Fund, 2009 -2014
Number of Participants and Participation Rate of New Rural Cooperative Medical System in China, 2009-2013
Number of Medical & Health Institutions in China, 2013-2014
Number of Hospitals in China (by Class), 2010-2014
Number of Beds of Medical and Health Institutions in China, 2012-2013
Number of Visits of Medical and Health Institutions in China, 2013-2014
Overview of Enterprise Annuity in China, 2010-2014
Population of People Aged 65 and Over and % of Total Population in China, 2009-2014
Dependency Ratio of People Aged 65 and Over in China, 2009-2014
Proportion of People Aged 15-64 in China, 2009-2014
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Selected Charts
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Average Household Size in China, 2009 -2014
Classification of Elderly Care Institutions in China
Number of Elderly Care Institutions in China by Type, 2008-2014
Number of Beds and Old People in China’s Elderly Care Institutions (by Type), 2008-2014
Bed Utilization in China’s Elderly Care Institutions, 2008-2014
Number of Beds per 1,000 Aged People in China’s Elderly Care Institutions, 2008-2014
UK’s Pension System
Japan’s “Two-generation Housing” Mode
Comparison of Foreign Aged Care Modes (Communities)
Aged Care Real Estate Projects and Modes of Real Estate Companies in China, 2010-2015
Aged Care Real Estate Projects of Insurance Companies in China, 2010-2015
Aged Care Real Estate Projects of Diversified Enterprises in China, 2010-2014
Aged Care Industry Layout in China of Foreign-funded Enterprises, 2012-2015
Cases and Operational Characteristics of Self-operation Type Aged Care Real Estate in China
Cases and Operational Characteristics of Sale + Lease Type Aged Care Real Estate in China
Cases and Operational Characteristics of Sale Type Aged Care Real Estate in China
Revenue and Net Income of Vanke, 2010-2014
Revenue of Vanke (by Business), 2010-2014
Vanke’s Revenue Structure (by Business), 2010-2014
Vanke’s Revenue (by Region), 2010-2014
Vanke’s Revenue Structure (by Region), 2010-2014
Vanke’s Gross Margin, 2010-2014
Vanke’s Gross Margin (by Business), 2010-2014
Vanke’s Gross Margin (by Region), 2010-2013
Vanke’s Sales Area, 2012-2014
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Selected Charts
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Vanke’s Measured Area, 2011-2014
Vanke’s Revenue and Net Income, 2013-2017E
Revenue and Net Income of Poly Real Estate, 2010-2014
Revenue of Poly Real Estate (by Business), 2010-2014
Revenue Structure of Poly Real Estate, 2010-2014
Gross Margin of Poly Real Estate, 2010-2014
Gross Margin of Poly Real Estate (by Business), 2010-2014
Revenue and Net Income of Poly Real Estate, 2013-2017E
Revenue and Net Income of Beijing Capital Land, 2010-2014
Gross Margin of Beijing Capital Land, 2010-2014
New Investment Projects of Beijing Capital Land, 2014
Land Reserve Distribution of Beijing Capital Land (by Region) at the end of 2014
Revenue and Net Income of Beijing Capital Land, 2013-2017E
Revenue and Net Income of Sino-Ocean Land, 2010-2014
Revenue of Sino-Ocean Land (by Business), 2010-2014
Revenue Structure of Sino-Ocean Land (by Business), 2010-2014
Revenue of Sino-Ocean Land (by Region), 2013-2014
Revenue Structure of Sino-Ocean Land (by Region), 2014
Gross Margin of Sino-Ocean Land, 2010-2014
Revenue of Sino-Ocean Land (by Product), 2013-2014
Land Reserve Proportion of Sino-Ocean Land (by Region), 2013-2014
Newly Purchased Land of Sino-Ocean Land, 2014
Revenue and Net Income of Sino-Ocean Land, 2013-2017E
Revenue and Net Income of Taikang Life, 2010-2014
Taikang Life’s Revenue (by Business), 2010-2014
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
Selected Charts
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Taikang Life’s Revenue Structure (by Business), 2010-2014
Revenue and Net Income of New China Life Insurance, 2010-2014
Revenue of New China Life Insurance (by Business), 2010-2014
Revenue Structure of New China Life Insurance (by Business), 2010-2014
Revenue and Net Income of New China Life Insurance, 2013-2017E
Revenue and Net Income of Ping An Insurance, 2010-2014
Revenue of Ping An Insurance (by Business), 2010-2014
Revenue Structure of Ping An Insurance (by Business), 2010-2014
Revenue and Net Income of Ping An Insurance, 2013-2017E
Revenue and Net Income of Union Life Insurance, 2010-2014
Revenue of Union Life Insurance (by Business), 2010-2014
Union Life CCRC Aged Care Scheme
Categories of Membership Cards and Their Costs & Interests of Shanghai Qinheyuan
Huichen Life’s Price List for Care-type Apartment for the Elderly
Nursing Assessment Standards and Care Costs of Tianjin Hetong Elderly Welfare Association
Sunset Glow Project
Charging Standard of Sunset Glow Love Nursing Home in Jiangyin
Charging Standard of Pudong Sun Moon Star Nursing Home
Charging Standard of Xuhui Sun Moon Star Nursing Home
Charging Standard of Yangpu Sun Moon Star Nursing Home
Charging Standard of Ningbo Sun Moon Star Nursing Home
Charging Standard of Shanghai Sun Moon Star Nursing Home
Charging Standard of Shanghai Aiyide Nursing Hospital
China Taiping’s Elderly Care Industry Layout
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
How to Buy
You can place your order in the following alternative ways:
1.Order online at www.researchinchina.com
Choose type of format
PDF (Single user license) …………..2,500 USD
2.Fax order sheet to us at fax number:+86 10 82601570
Hard copy
3. Email your order to: report@researchinchina.com
PDF (Enterprisewide license)…....... 3,800 USD
………………….……. 2,700 USD
4. Phone us at +86 10 82600828/ 82601561
Party A:
Name:
Address:
Contact Person:
E-mail:
※ Reports will be dispatched immediately
once full payment has been received.
Tel
Fax
Payment may be made by wire transfer or
Party B:
Name:
Address:
Beijing Waterwood Technologies Co., Ltd (ResearchInChina)
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18,
Suzhou Street, Haidian District, Beijing, China 100080
Liao Yan
Phone: 86-10-82600828
credit card via PayPal.
Contact
Person:
E-mail:
report@researchinchina.com
Fax:
86-10-82601570
Bank details: Beneficial Name: Beijing Waterwood Technologies Co., Ltd
Bank Name: Bank of Communications, Beijing Branch
Bank Address: NO.1 jinxiyuan shijicheng,Landianchang,Haidian
District,Beijing
Bank Account No #: 110060668012015061217
Routing No # : 332906
Bank SWIFT Code: COMMCNSHBJG
Title
Format
Cost
Total
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com
RICDB service
About ResearchInChina
ResearchInChina (www.researchinchina.com) is a leading independent provider of China business intelligence. Our
research is designed to meet the diverse planning and information needs of businesses, institutions, and professional
investors worldwide. Our services are used in a variety of ways, including strategic planning, product and sales forecasting,
risk and sensitivity management, and as investment research.
Our Major Activities
 Multi-users market reports
 Database-RICDB
 Custom Research
 Company Search
RICDB (http://www.researchinchina.com/data/database.html ), is a visible financial data base presented by map and graph
covering global and China macroeconomic data, industry data, and company data. It has included nearly 500,000 indices
(based on time series), and is continuing to update and increase. The most significant feature of this base is that the vast
majority of indices (about 400,000) can be displayed in map.
After purchase of our report, you will be automatically granted to enjoy 2 weeks trial service of RICDB for free.
After trial, you can decide to become our formal member or not. We will try our best to meet your demand. For more
information, please find at www.researchinchina.com
For any problems, please contact our service team at:
Room 502, Block 3, Tower C, Changyuan Tiandi Building, No. 18, Suzhou Street, Haidian District, Beijing, China 100080
Phone: +86 10 82600828 ● Fax: +86 10 82601570 ● www.researchinchina.com ● report@researchinchina.com